u.s. education department named california one of 19 finalists in the second round of competition to reform schools. it offers $3 billion in grants. california got nothing in the first round. it since made new commitments to improve struggling schools and improve the gap. obama administration has been fighting for teacher pay and for teacher tenure and expand charter schools. >> gubernatorial candidate meg whitman is locked in a tight battle with the governor but they are asking about her future plans. >> if you win at the november you are at the top of the republican party. ever thought about running for the white house? >> no. i am here to run california. i want to fix california. where california goes does the country. >> the former ceo appeared on "good morning america" today. she says the focus is helping california out of the recession. state's unemployment rate is 12.3%. she has spent $90 million and most of it was her own money. she faces jerry brown in the general election. if bro